Aurisco(SH:605116) KAIYUAN SECURITIES·2024-06-25 11:30Investment Rating - The report assigns an initial investment rating of "Buy" for the company [4]. Core Insights - The company has a strong focus on the research and production of complex APIs and formulations, with significant growth potential in its formulation business [3][15]. - In 2023, the company achieved revenue of 1.263 billion yuan, a year-on-year increase of 25.24%, and a net profit attributable to shareholders of 289 million yuan, up 37.19% year-on-year [6][30]. - The company is expected to maintain robust growth, with projected net profits of 381 million, 517 million, and 636 million yuan for 2024, 2025, and 2026, respectively, reflecting year-on-year growth rates of 31.6%, 35.7%, and 23% [6][41]. Revenue and Profitability - The company has established a diversified product chain across six major fields: respiratory, cardiovascular, anti-infection, nervous system, oncology, and women's health, which supports its sustainable development [7]. - The revenue from the company's oncology products has significantly increased, from 36 million yuan in 2020 to 244 million yuan in 2023, with a compound annual growth rate of 89.25% [78]. - The gross profit margin has steadily increased from 47.06% in 2018 to 55.92% in 2023, indicating improved profitability [55]. Market Position and Strategy - The company is actively promoting an integrated development strategy of "API + formulation," which is expected to enhance its market competitiveness [6][17]. - The company plans to issue convertible bonds to raise up to 812 million yuan for investment in various projects, including the production of specialty APIs and anti-tumor formulations [7][41]. - The company has a strong R&D capability with a substantial pipeline of projects, which is expected to contribute to future performance growth [6][9]. Industry Context - The global API market is projected to grow at a compound annual growth rate of 6.6% from 2022 to 2028, driven by factors such as aging populations and advancements in treatment options [36]. - China has become a leading producer and exporter of APIs, accounting for approximately 30% of global production capacity and 20% of the export market share [58].